Life insurance and health insurance cover should be made available from April 1 next year to people living with HIV/AIDS or those who contract the virus after subscribing to a policy, according to a draft circular issued by Insurance Regulatory Development Authority (IRDA).
The Department of AIDS Control has, however, objected to proposals by the regulator, asking IRDA to modify it in light of the recommendations of the 2010 working group set up for the purpose.
NACO has said that the draft circular only comes out with policies by Life Insurance companies and not by general insurance companies, which provide majority of health insurance policies.
The Department of AIDS Control has also asked the IRDA to waive the standard waiting period of two years for people living with HIV/AIDS (PLHA) in cases "where the CD4 count is 350 or more. In case where the CD4 count is less, the working group has recommended that the waiting period may be based on a certificate from the attending doctor of PLHA".
CD4 cells are a type of white blood cells that fight infection and their count indicates the stage of HIV or AIDS in a patient.
"The morbidity and mortality studies conducted by Institute of Actuaries in India...Do not mention the critical observations made by the working group. Since these studies would become the basis of pricing of products, it is suggested that any such reference may include the critical observations of working group," the NACO letter to IRDA says.
It adds, "Standard underwriting guidelines for life insurance products mention continuation of exclusion of PLHIV in current and new products, as well as the standard waiting period for PLHIV. Both of these are not in consonance with the recommendations of the working group."
The insurance products of both group and individual type should also be available for widows and children and they should be able to purchase it without getting excluded.
As such widows and children are more vulnerable, special efforts shall be made so that they are not excluded, NACO has demanded from IRDA.
As per the draft circular, all life insurers shall put in place policies with respect to life insurance policies for PLHA, specifying the premium of the products according to different stages of the disease among other conditions.
It also proposes health insurance products for those insured for life who contract the disease after the commencement of the policy and asked insurers to come out with different designs like providing lump sum or annuity.
About 2.4 million Indians are living with HIV/AIDS.
